Statement on the Renewal of the Central Bank Gold Agreement

Fri Aug 7, 2009 12:14pm EDT

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NEW YORK & LONDON--(Business Wire)--
The World Gold Council (WGC) today welcomes the renewal of the Central Bank Gold
Agreement (CBGA), which reaffirms the importance of gold as a key element of
global monetary reserves. 

Aram Shishmanian, Chief Executive of WGC said: 

"The announcement is a clear endorsement of gold`s role in today`s global
economic and financial architecture and a reflection of the success of the
previous Central Bank Gold Agreements. 

"The agreement to limit the sale of gold over the five year period to 2000
tonnes demonstrates that, at a time of continued market volatility and
inflationary fears, gold`s unique investment qualities provide the necessary
hedge and protection that central banks are seeking. The reduction in the annual
ceiling on sales from 500 tonnes in the current agreement to 400 tonnes a year
starting on September 27, 2009, reflects an acknowledgment of the fact that the
central banks` appetite for sales is diminishing. This is evident in the way
that total sales under CBGA2 look set to fall well short of the ceiling the
signatories set for themselves in 2004." 

The decision to allow room under the agreed ceiling to incorporate the IMF`s
proposed sale of 403t demonstrates a willingness to help the IMF comply with the
recommendations of the Crockett Report that IMF sales should represent no net
addition to the quantity of gold the market is expecting from the official

Notes to Editors:

World Gold Council

World Gold Council`s mission is to stimulate and sustain the demand for gold and
to create enduring value for its stakeholders. It is funded by the world`s
leading gold mining companies. For further information visit 

World Gold Council
George Milling-Stanley, +1 212-317-3848 or +1 914-255-0134
Managing Director, Government Affairs
Matt Graydon, + 44 (0) 207 826 4716
Director of Corporate Communications
CJP Communications
Kelsea Michael, +1 212-279-3115 x231

Copyright Business Wire 2009

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